Scientific glass case Study Example | Topics and Well Written Essays - 250 words

Scientific glass - Case Study Example ce SG was selling its products to a variety of organisations such as biotechnology firms, pharmaceutical firms, research labs, and environmental testing facilities, the cost of logistics was reduced due to the fact that an assorment of products can be distributed whereas taking taking advantage of consolidated transporatation. Achieving logistical support across the global market usually needs strategic location of warehouses. SG company used centralised parts inventory at a central warehouse thereby reducing the requirement for inventories at each assembly plant. Products are bought and shipped to the strategically located central warehouse, thus taking advantage of consolidated transportation. Centralising of the warehouses in North America allowed SG to pool its inventory so as meet demand. SG maintained a single warehouse which served all of North America, or in which SG’s warehouses offered integrated service to meet consumer’s demand (Wheelwright & Schmidt, 2011). A firm can also outsource its warehousing functions. For instance, Global Logistics offered delivery service that included centralised warehousing in Atlanta. The firm assured SG it would administer all order-fulfillment and inventory control functions. The firm also attempted to keep inventory balances as lean as possible wi thout jeopardizing the capability of the distributors to punctually meet client’s demand by not being paid for any product that was delivered to the foreign warehouses until an additional product was sold and delivered to the consumer. A typical warehouse uses a combination of extended and active product storage facilities. Warehouses erected by SG directly served customers thus focusing on short-term storage. On the contrary, other warehouses use extended storage for speculative or obsolete inventory. Whereas effective logistics systems need not to be designed to hold inventory for extended periods, there are some instances when inventory storage is actually justified